Last week, rumors circulated that Microsoft was planning on selling a 4GB Xbox 360 bundle with a Kinect sensor and two-year Xbox Live Gold service subscription. The only catch was that there'd be a $14.99 monthly service fee for the service, but gamers would receive the regular online gameplay features of an Xbox Live Gold subscription along with extra content from cable providers.

The total cost of the two-year bundle is $459, which is a bit of an increase from the current $418 4GB Xbox 360 and Kinect bundle with two years of Xbox Live Gold.

The Microsoft Store online published a redeemable coupon for the $99 bundle today, where offer code 885370366266 can be brought to a local Microsoft store in exchange for the latest deal.

Last week's report also noted that there may be an early termination fee (ETF), but the amount had not been specified at the time. Microsoft has now confirmed that there will, in fact, be an ETF that is set based on the number of months passed after the start of the two-year subscription. If the service is terminated within the first three months, the ETF will be $250. At the fourth month, the ETF is $240. From there, the ETF decreases by $12 each month until it hits $0 at 24 months.

I think this is Microsoft trying to get of their stock before introducing the next XBOX.

Maybe it's also a sign that Microsoft will not drop the 360 when the next generation is out which would be a reverse of what they did with the original XBOX. The future is hard to predict.

I for one see this is as really bad deal. It's too expensive and two years from a 360 will feel even more underwhelming than it does today. If cash is an issue then going for a second hand 360 is the better option.